In a recent development, a US District Court handed down a four-month prison sentence to Changpeng Zhao, the founder and former CEO of Binance.

According to reports by Mail Online, Judge Richard Jones presided over the case and opted not to impose the recommended five months of probation. This ruling follows Zhao's guilty plea in November 2023 on charges of money laundering.

The 47-year-old entrepreneur confessed to violating the Bank Secrecy Act by neglecting to establish an effective anti-money laundering system during his tenure as CEO of Binance from July 2017 to November 2023.

Additionally, Binance itself pleaded guilty to similar charges from the US Department of Justice and was penalized with $4.3 billion in fines and restitution for failing to register as a money transmitting business, as reported by Forbes.

US prosecutors had sought a three-year prison sentence for Zhao, citing the severity of his willful violations against money laundering laws.

They argued that imposing a sentence twice the maximum recommended under federal guidelines would underscore the gravity of his offenses and serve as a deterrent to others.

Earlier this year, a US district court ordered Zhao to surrender his Canadian passport and obtain court approval before traveling within the country.

These measures were implemented by Honorable Richard A. Jones following restrictions on Zhao's bond conditions.

This development underscores the legal ramifications faced by prominent figures in the cryptocurrency industry and highlights the importance of compliance with financial regulations.